house.jpgConstruction Industries Federation of Zimbabwe (CIFOZ) says the current liquidity constraints have adversely affected the growth of the sector as financial institutions are not disbursing funding.

 

The constraints facing financial institutions have cascaded to the construction industry which relies more on the mortgage finance and long-term loans for the performance of the sector.

In an interview in the capital CIFOZ President, Mr. Philip Chiyangwa said financial constraints are being felt in the construction industry with stakeholders anticipating  that measures put in place by fiscal authorities will bring sanity into the financial services sector.

“The liquidity constraints have greatly affected the sector which has been registering growth in the past two years. We hope that measures being instituted by fiscal and monetary authorities will bring back the glitter in the construction sector,“ said Chiyangwa.

Land developer, Mr. Samuel Mudavanhu, said several projects have come to a standstill as financial institutions are failing to release the much needed capital for the construction industry.

The country has been experiencing liquidity challenges in the previous years and recently banks have failed to issue out long term loans as well as individual loans which dominated the market the greater part of last year.

The construction industry has been on an upward growth since 2011 with stakeholders expressing optimism that real growth will be registered this year owing to improved funding.

In a bid to curb the crisis, fiscal authorities have directed financial institutions to re-direct funds in offshore accounts to the local economy.